Thrifty Car Rental 2009 Annual Report Download - page 25

Potential for Impairment of Long-Lived Assets
A significant decline in operations on both an individual location and overall company basis could
indicate that certain long-lived assets are impaired. We will continue to test our long-lived assets for
potential impairment and may be required to write down a portion or all of the remaining long-lived
assets, comprising property and equipment and software totaling approximately $122.3 million at
December 31, 2009.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The Company owns its headquarters located at 5330 East 31st Street, Tulsa, Oklahoma. This location is
a three building office complex that houses the headquarters for Dollar and Thrifty. These buildings and
the related improvements were pledged as collateral to Deutsche Bank Trust Company Americas
(“Deutsche Bank”), as administrative agent for a syndicate of banks under the Senior Secured Credit
Facilities (as defined below).
In connection with the Senior Secured Credit Facilities, the Company also executed liens in favor of
Deutsche Bank encumbering its real property located in Tampa, Las Vegas, Ft. Lauderdale, Dallas,
Houston, Salt Lake City, San Diego, Chicago, Memphis, Tulsa, Little Rock, Fort Myers, Florida and
Harlingen, Texas.
The Company owns or leases real property used for company-owned stores and office facilities, and in
some cases owns real property that is leased to franchisees or other third-parties. As of December 31,
2009, the Company’s company-owned operations were carried on at 296 locations in the U.S. and
Canada, the majority of which are leased. Dollar and Thrifty each operate company-owned stores under
concession agreements with various governmental authorities charged with the operation of airports.
Concession agreements for airport locations, which are usually competitively bid, are important for
securing air traveler business. These concession agreements typically provide that the airport will receive
a specified percentage of vehicle rental revenue or a guaranteed minimum concession fee, whichever is
greater. Additionally, certain concession agreements require the payment or reimbursement of operating
expenses.
ITEM 3. LEGAL PROCEEDINGS
On November 14, 2007, a purported class action was filed against the Company, by Michael Shames and
Gary Gramkow, individually and on behalf of all others similarly situated, in the Southern District Court of
California, claiming that the pass through of the California Trade and Tourism Commission and airport
concession fee authorized by legislation effective in January 2007 constitute antitrust violations of the
Sherman Act and the California Unfair Competition Act. The case is styled Michael Shames; Gary
Gramkow, on behalf of themselves and on behalf of all persons similarly situated v. The Hertz
Corporation, Dollar Thrifty Automotive Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA,
Inc., Enterprise Rent-A-Car Company, Fox Rent-A-Car, Inc., Coast Leasing Corp., The California Travel
and Tourism Commission and Caroline Beteta (No. 07 CV 2174 H BLM (S.D. Cal.)). The defendants filed
a motion to dismiss the amended complaint, and on July 25, 2008 the Court issued an order denying the
motion as to the antitrust claims but granting the motion to dismiss state law claims. The Court also
dismissed The California Travel and Tourism Commission from the litigation based on state action
immunity. The Company intends to vigorously defend this matter.
On December 13, 2007 and December 14, 2007, purported class actions were filed against the
Company, by Thomas Comisky and Isabel Cohen, respectively, individually and on behalf of all others
similarly situated, in the Central District Court of California. These lawsuits claim (among other matters) a
violation of rights guaranteed under the Free Speech and Free Association Clauses by compelling out-of-
state visitors to subsidize the Passenger Car Rental Tourism Assessment Program. On February 19,
2009, these actions were dismissed with prejudice. The plaintiffs have filed their notice of appeal with the
Ninth Circuit Court of Appeals.
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